Royal Bank of Scotland, which owns Ulster Bank and First Active, has reported pre-tax profits of £3.4 billion for the first half of 2004, up 17% on the same period last year.
Today's performance from RBS, which was at the lower end of market expectations, benefited from recent acquisitions and the strength of the British economy as consumers show no let-up in their continued appetite for borrowing.
The figures from the UK's second largest bank come a day after global banking business HSBC posted half-year profits of £5.62 billion.
RBS chief executive Fred Goodwin said he was content with prospects for the remainder of the year, despite the likelihood of more interest rate rises.
Today's figures show the retail banking division, which comprises both the RBS and the NatWest trading brands, achieved strong growth across all product areas with total income up 8% to £2.33 billion.
During the period, RBS completed a number of acquisitions, including a deal for First Active and the credit card business of People's Bank in the US.
